loose groupings

ok guys i have a .22 ss, swapped in a 65g hammer, 24 inch .22 barrel, at the moment im sighted in at 35 yards, and using a 3-9 x 40 cheapie scope, i can shoot 5 inch groups at 130 yards holding at the 3rd mil dot below center, (calm day on a bipod ) on power setting 4, im thinking if i had a higher magnification scope (can barely see the 6 inch mini gong at that range) i could focus better on the bullseye and tighten up the grouping some more, what you guys think? if so whats a good scope? for me the higher the magnification the better, (right eye going bad due to scar tissue) thanks in advance