Wolves and Forest have both had mixed summers, with uncertainty surrounding the Midlands pair.
Wolves and Forest both head into the new campaign with new managers in charge, and Holloway believes that both could fall short in the race for promotion - with Forest finishing in 12th and Wolves ending up in 13th place.
“Forest will have more to shout about this season and I can see them potentially troubling the top half if the new manager hits the ground running and adapts to the league,” he said.
“Wolves is a hard one to weigh up with the new takeover. You can't be playing catch up in the Championship - you need to get a plan in place.”
Forest have only just started to make additions to their side, with Philippe Montanier now in charge.
It took a long time for Forest to get Montanier in place, but optimism is starting to build around the City Ground.
Wolves, meanwhile, are heading into a period of uncertainty following the takeover of Fosun international.
Kenny Jackett has been replaced by Walter Zenga, and a host of players are expected to arrive from across Europe.
Wolves have plenty of money to spend, but it remains to be seen how the new additions will gel at Molineux.