That's not good. The needle should have come off flush. I'd say the movement is shot on that unit. The 85 mph units are also very rare. I thought all the 85 mph were cable driven units, but apparently in 1989 there was an 85 mph electrically driven speedometer. You can refer to this link for the different types of cluster over the EEK AC/AY body style.
http://dodgedynasty.50megs.com/mods/cluster/acay.html
One thing you might try, is to use the 120 mph speedometer (assuming it fits OK) and try changing the pinion gear in the speed sensor. You will need to see what is in there now, and go to a gear with 1 less number of teeth. The pinion gears are color coded according to the number of teeth.
If you have a blue gear (20 teeth), switch to a yellow gear (19 teeth).
If you have a yellow gear, switch to a red gear (18 teeth).
Part #'s are
4567883 Red 18 teeth
4567880 Yellow 19 teeth
4567882 Blue 20 teeth
The housing for the speed sensor that has the pinion gear attached, is located on the transaxle, driver's side axle extension. It faces up and has a wiring harness plug connected. There is one 10 mm head screw holding it in-place and an internal o-ring that sometimes makes it a little tough to pull up the speed sensor. Expect some small amount of transmission oil to come out when you pull the speed sensor. Good luck.
BTW, I should have a yellow gear in my spare parts collection (sent for cost of postage) if you find that you have the blue gear and need to change it to yellow. If you need a red gear, find one online or visit your Mopar parts counter. They will probably have to order it.