My wife is a Traditional Shawl dancer in native American Pow Wow`s here in Michigan (when we can get her to them). She has several of those.
She says the item is made and used to hold BRAIDED hair, similar to a pony tail. The difference is the hair itself is braided to form a more decorated look, and is often braided to lay flat. The women use wraps EXACTLY like that to hold their braided hair when they are dressed in their regalia for participating in the different dances at the pow wow`s.
She says that one is VERY nice.