USA international Holden, 27, has made three appearances for the Owls since arriving for an initial month-long loan spell at the end of last month from Bolton as he bids to build up fitness following a nightmare two-year period dogged by injury.
"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."
Holden has struggled to force his way back into Bolton's starting line-up since returning from a serious knee injury at the turn of the year, but hopes to make a big impression during his time at Hillsborough.
"It's no secret I've missed a lot of football over the past two years and it's coming back quicker and quicker," he said.
"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.
"There's nothing that can replicate playing games. I played a couple of reserve games and games here and there for Bolton and to put the shirt on here and play in a couple of derby games makes you really feel like you're part of it again and that you're back.
"Everyone at the club has made me fantastically welcome."
- Sports & Recreation