Transfering online files to online folders?

Well, I'm on my FTP, and I upload a .txt format file. After this, I go and try and drag it into a folder, is there anyway to do this? It won't let me..

Why don't you upload the file to the correct folder in the first place? Anyway, of course you can move online files. Drag & drop should work. If it doesn't, you probably don't have write access to the destination folder. Please post the log if you have further problems.