E.g. if my path is F:/pictures/ and has the following folders:
and I hover over birthday_2020 in the file dir path and scroll wheel down it would bring me to the path F:/pictures/birthday_2021, if I scroll wheel up it would bring me back to birthday_2020 and such.
Essentially you want middle mouse to cycle through this menu:
I can see how this would be useful but do note that menu is also sorted alphabetically. If you have a folder format that sorts by anything other than name it won't cycle in the same order as it's displayed. I can imagine it would be a bit tricky to get it to sort and cycle by the user configured folder options.