Cassidy joined Rovers last month, making his debut from the bench in the 1-1 draw at Sheffield United.
The 19-year-old scored in his next two substitute appearances, contributing to 2-0 victories over Rochdale and Exeter before making his full debut against Bury at the weekend.
"Jake has done really well for us in the time he has been here so I'm pleased to be able to keep him for the rest of the season," Tranmere boss Ronnie Moore told his club's official website.
"He took his two goals really well against Rochdale and Exeter and hopefully will get a few more in the remaining six games.
"I'm grateful to Wolves for allowing Jake to stay with us."