Folkard fell to a 6-2 defeat against Mexican tenth seed Mariana Avitia, after defeating Russia's Kristina Timofeeva in her opening round.
And the 28-year-old admitted to being nervous as to how she would react to the raucous home support, something she isn’t used to seeing in the sport.
She said: “I felt nervous but also felt I was in control.
“I've never shot in front of a crowd like this. We've shot in front of school kids making loads of noise to try to put us off – but these were real fans and so many of them.
“It was a great crowd. With support like this you can't explain how it makes you feel. I watched Larry (Godfrey) shoot last night so I knew what to expect.”
The pair shared the points in the first round after scoring 28 each, but Avitia took the second and third set (29-27, 27-26) to lead 5-1 and leave Folkard on the brink of an Olympic exit.
Two nines and an eight in Folkard’s final efforts allowed Avitia to draw level (26-26) with her final arrow, and take a point to secure the 6-2 win and her place in the last 16.
And the Brit believes a better performance in the ranking round would have given her easier route to Olympic success as she remains undecided whether to tackle Rio 2016.
She added: “Normally, if you are shooting nines you are pretty happy. I should have qualified higher – that's why I have gone out.
“I'll support my mates here and then try to see as many other sports as I can before I leave on Monday to start training for the World Field Archery Championships.”
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