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Why is my temp guage going from normal to 3/4 and almost overheating? on 1994 Toyota Celica

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When I'm driving my temp gauge will start to climb to about 3/4 or more but not fully overheat. Then I will put the heat on and it will drop back down to halfway which it normaly is always at. I checked my anitfreeze level and that's good. Radiator is newly relpaced. Is it my thermostat?
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