Yes, Projects in the projects panel can be re-arranged. Zoho Projects offers two methods, namely
Drag & Drop, Sort Alphabetically in which Projects can be re-arranged.
To re-arrange the projects,
1. Click on "reorder projects" icon.
2. Drag and Drop the projects as per the requirement and click "Save Project Order" button.
3. Or, Click on "Alphabetical Sort" button and click on "Save Project Order" button.