Farah became the first British man ever to win a 10,000m Olympic gold, capping off Team GB's best day at an Olympics for over a century.
However, Coe believes that Farah could make even more history by becoming the first person since 1974 to win both events at the same Games.
"Timing is everything, particularly in distance events," said Coe.
"If you watched Mo run a few weeks ago at Crystal Palace, he was running well but he looked slightly laboured that night. That was the moment they decided, clearly, to start tapering down.
"At that level it is not about getting it right even to the day, it is literally presenting the athlete on the start line for that very moment. That's the tough side of what they did, and they got it right. They got it pitch perfect."
The 5,000m men's final will take place on Saturday.