An equaliser from New Zealand striker Chris Wood following a blunder from Damien Delaney 17 minutes from time consolidated an Andy King goal to deny Palace a first victory in seven npower Championship matches after Danny Gabbidon and Stephen Dobbie had ended a drought stretching back to the beginning of March.
But with automatic promotion now out of the question, Holloway refused to condemn his side and insisted they can still achieve their dream of promotion via the play-offs.
"We're disappointed with that having been in front twice but it's important to have got a point," he said.
"I would have preferred two more but you've got to take what you can. I was impressed with the courage of the lads and we scored two goals, which we haven't done for a while.
"I'm just disappointed with the last goal because it looked like a mistake and we have to eradicate them. It's another point to our target and we now have to move on.
"We need to tweak the nose of fear and stick an ice cube down the vest of terror."
Foxes manager Nigel Pearson praised his side's battling spirit but also admitted that on another day things could have very easily been different.
"We were unlucky not to win it," he said.
"I think we were the better side. We had to deal with a Palace side who made quite a few changes and adopted a different style but I think for the most part we coped with that threat well and showed some resilience to come from a goal behind on a couple of occasions. We created a lot of decent chances and played some good football."
- Sports & Recreation
- Danny Gabbidon
- Damien Delaney
- Stephen Dobbie