Yes, being too high can cause that. Also, trimming too quickly can cause it.
With these boats its a balance between straight line speed and handling. When you get your speed where you want it check your handling. Can you take turns to your liking? Does the prop blow out in turns? Water pressure drop too much? If so, drop it back down 1/4".
Trim makes a huge difference, too. When I'm on plane I put my needle where I described. Watch the speed and compare to the RPMs. If you trim higher and the speed drops or stays about the same but the RPMs climb you are getting too much slip. If you trim down RPMs and speed will both drop. At high speed it only takes a touch on the trim to make a difference. Where your final trim will be depends on your load.

Also keep in mind your low speed performance. The high the motor the flatter she will run. I noticed I would get porpoising at about 20 MPH when I was at 3 3/4" At 3 1/4" it planes smooth down to about 19 MPH.
I also noticed a slight chine walk at 3 3/4" above 60 MPH. At 3 1/4" it's stable all the way up to 66 (as fast as she will got at this height).