Can't be 100% factual here, but here goes:
I attempted troubleshooting my tranny temp gauge also (the needle of which seldom rises above the left resting post). My tranny-temp sensor was at the front-center near the tranny pan. As you describe your wire, it would be too short to reach what I've just described.
Suggest using a cheap digital multi-meter (Harbor Freight) to see if the wire is (1) carrying any voltage, or (2) has an ohmage -path to ground .... just to define this wire a little further. The the FORUM can mull it around some more!
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Robi & Dale ---- Go Navy ----
2016 Winnie TOUR 42'
Tow: '19 Buick Envision
or: '08 Buick Lucerne
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