The Spain international has struggled in the Premier League and also in open play since joining from Valencia in the summer, but scored a treble against Anzhi Makhachkala on Thursday night.
Spurs won the game 4-1 to end Group K with a 100 per cent record, with Soldado's hat-trick the highlight as he took his tally for the season to nine.
"Everyone is delighted for him. He's not scored as many as he would have liked but hopefully he will go on a run now and show what a quality striker he is," Townsend said.
Lewis Holtby scored Tottenham's other goal on another easy night for Andre Villas-Boas' men and he hopes his men can carry on winning as they aim for the Champions League next season.
"It's important to keep the winning streak going," he said on ITV4.
"It was important for everyone who played and that we scored four goals. We need to keep the confidence up as we have a big game against Liverpool at the weekend as we try and get in the Champions League."
Manager Villas-Boas praised his players for their performance.
"The professionalism of the players to play the game was excellent and we were able to give a good standard to our play," he said.
"We created lots of attacking chances and it was pleasing on the eye."