You can safely move it as far as I know…. but what do you mean folder?
Up one level would already be a folder….
if your site is in html, or public_html or whatever, you place the wp-config file in whatever folder holds your html or public_html folder
like if your path is /home/content/u/s/e/user/html/
And your WP is in html, the wp-config would go in user, the next folder up which is not web accessible. WP will automatically look for it there
If you are on shared hosting, you probably can’t do that anyway
And if you have WP in a subdirectory, there would be no point in moving wp-config, as moving it up a level would still put it in a web accessible directory
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