A downhole tool, such as a sliding sleeve, deploys on a tubing string in a borehole. The tool has a housing with an internal bore and at least one port communicating outside the housing. An insert disposed in the bore can move from a closed position to an opened position relative to the port so fluid can be communicated to the borehole. A burst band disposed outside the housing at the port can break away from the housing in response to a particular pressure level communicated through the open port. In particular, the insert can have a seat that engages a deployed plug or ball. The insert shifts open when a first level of applied pressure against the seated ball shears the insert free. This can give a first indication that the insert has moved open. Then, a second level of pressure can be detected when the burst band breaks as a second indication that the insert is opened.