Holloway believes that Sunderland have a chance to staying up, because they have Jermain Defoe in their squad.
The veteran forward has rolled back the years this season, and he has scored with great frequency in the Premier League.
The former England international has looked very lively, and Holloway feels that the fact Defoe is in Sunderland’s squad gives them a chance of survival.
The former Queens Park Rangers boss was less optimistic about Newcastle’s potential to avoid the drop, though - and he suggested that their lack of a clinical forward means that are likely to be a Championship side next season.
"Rafa Benitez is only one man and he’s still got the same people to pick from,” he said.
“It’s difficult because you’re restricted by the transfer windows. Newcastle need someone to start scoring and to be honest Sunderland have one of the best natural goalscorers born in Jermain Defoe. He might be able to do it for them.”
Defoe has racked up 12 Premier League goals this season, which puts him well clear at the top of Sunderland’s goalscoring charts.
The experienced striker has scored three times in his last seven outings, and he is likely to be key as the Black Cats look to make it out of trouble.
Newcastle’s top goalscorer in the league this season is Georginio Wijnaldum. The Dutch international has hit the back of the net on nine occasions.