Elmander, 29, has three goals in five league games so far and his boss admits he is like a different player to the one who struggled so badly in the last two seasons.
Coyle said: "Last season, he played ever so well but did not score the goals he deserved but he's been among them this year.
"When things aren't going well, you have to be strong and stay true to your beliefs that you are a good striker and can score goals.
"It's great when someone comes out the other side. He has to continue that and I'm pretty sure he will."
Coyle believes Elmander's big price tag weighed on the player's mind for too long but reckons he has learned to live with it.
He said: "You know what you are doing for the team but people are saying he's a striker who cost £8m and he should be doing more.
"That is the perception you have in the game but when you start getting among the goals you take a tremendous lift from that."