I am happy to announce that Dolphin has a new view mode: Columns. Each column shows one folder. Select a folder and its content opens in the next column, so the path from the folder you opened down to your selection stays on screen. This layout is known as Miller columns, after Mark S. Miller, who created it in 1980.
Are you clicking on a file on your way to the target directory?
Out of the box Dolphin only overwrites the name of the file when you click on a file, not when you click on a folder.