Currently it's not possible to move folders. If you want to drag them, only the current Item below the cursor is selected.
A good solution would be, if you could select folders (also multiple folders with Ctrl-key), and move them to another folder (or to the root) per drag-and-drop.

Another good solution would be a Folder-Manager (or folder if you have to activate an edit-mode before you can reorder them per drag-and-drop).

Hey @rk,

Thanks for writing to us. Its a known issue and we are working on it. 

Cheers!

Creating folders and moving folders were the 2 first things I tried after starting the evaluation of your solution.

Do you have any ETA of this feature?

Hi @zorglups,

I can understand how eagerly you are waiting for this feature. This feature has already been developed and will be rolled out in any of  coming releases in cycle. Thanks for your cooperation.

Cheers!