Gayle was snapped up by Palace last week from Peterborough United.
Holloway told talkSPORT: "What I see in Dwight Gayle is someone who can patrol along our opponents' backline. He makes runs, he reads the situation well and he'll want to get in and finish with his right, his left and his head.
"He never stops working for his team and he never stops thinking. It's quite exceptional for someone who started where he did and his rise has been rapid.
"I just think he's perfect for Crystal Palace. I don't think I've seen a more natural finisher in a long time.
"I just hope he can deal with the pressure of this crazy media hype that he will get if he scores, or if he doesn't score. I just want him to do whatever he does and we'll help him through it. He such a wonderful kid as well, I'm delighted to have him."