The 27-year-old United States international has played three times for the Owls since arriving on an initial one-month loan spell from fellow Championship side Bolton.
Holden, who spent two years on the sidelines through injury, is aiming to use his spell at Hillsborough to impress and prove his fitness.
"I have two games left and we will re-evaluate it at that point," said Holden, who started for Dave Jones' side in Saturday's defeat at Leeds.
"It's until April 24 and we said both managers would sit down and have a chat and see where we go and there's a possibility I could be here until the end of the season.
"I'm happy the games are fast and furious. I feel fitter and stronger with every game and more comfortable and for me, it's about getting games, but at the same time contributing and making sure I leave here having made an impact.
"Everyone at the club has made me fantastically welcome."