Yes, you are on the correct menu. Select the “Recategorize” option from the action list then click Go then simply just override the Asset Category with the correct one then click Save.
How about the useful life of the asset? Do you need to change this too? The useful life that triggered the monthly depreciation is default from Asset Profile. So, changing the asset category is not changing the useful life automatically. You will need to update this by updating the Depreciation Criteria via Asset Basic menu.
Please let me know, thanks.